The fruits and spices processing industry in Andhra Pradesh and Telangana is poised for a significant growth. Bountiful availability of raw material along with positive policy environment that will build supply chain infrastructure is likely to create many new enterprises. This blog discusses the new opportunities, policy initiatives and funding availability for the industry.

What are the opportunities?

Enabling environment

Pic: 1 – Food Processing Industry: Government Policy

Creation of Infrastructure for Food Processing Industry

GOI as part of its Mega food park scheme has sanctioned four food processing parks in Telangana. The details are as under

Andhra Pradesh has SRINI Food Park in Chittoor, which is operational. Further, the state government has proposed to set up 8 mega food parks. Five of these parks will be located in the coastal districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari. Three more parks are proposed in the Rayalaseema in Chittoor, Kurnool and Anantapur.

Funding for Food Processing Industry

A fund of Rs. 2000 crore has been created under NABARD to fund the term loan for food processing industry. The fund is available for food parks as well as units that are located in food parks. Key features of loan are as under:

The loan is available to food processing units located in designated food parks[1]

The list of activities that would be funded include fruits/vegetable/dairy/meat/aqua/herbs/nutraceutical/food flavours, colours, detailed list is available in the link here

Maximum 75% of the project cost would be funded through term loan. Project cost would include site development/machinery/consultancy charges/capitalised working capital/pre-operative interest etc. If the individual is purchasing land (not leasing), 10 % of the land cost would also be included

Term loan would be for a period of 7 years, The rate of interest would be linked to the prevailing interest

Collateral would be required

How can we help you:

If you are interested in setting up a food processing industry, there is no better time than now. We at FineTrain can assist you in starting a fruit/spices processing unit. Our services include

Market viability assessment

Detailed project report preparation

Technical support

Reach Us:

[1] Food parks and mega food parks promoted by Ministry of food processing, food parks/food processing industrial estates promoted by State governments, Food processing SEZ, Any other area that has related infrastructure and has been designated as food park, the MOFPI has provided a list of such entities